Finding the best car insurance for company vehicles is a vital part of protecting your assets. More than just a legal requirement, selecting the best car insurance for your business is also a way to save you money and many potential headaches. As always, our goal here at Camino Financial is to equip businesses with the tools and resources they need to thrive.
In this article, we will walk you through the process of finding the best car insurance for your company’s vehicles. You will also find answers to some common questions about the best car insurance for businesses to get you started on the right foot.
Does It Cost More to Insure Your Car for Business Purposes?
Commercial auto insurance for small businesses tends to cost anywhere from $750-1,200 annually per vehicle. The exact price depends on your location, policy details, and provider. In some cases, this can be higher than the cost of personal car insurance. However, this depends on the above factors as well as how many vehicles you insure.
What Should You Look for in a Vehicle Insurance for Business?
What do business car insurance plans cover?
Business auto policies, sometimes called business auto coverage forms, cover uses of cars, vans, trucks, and other vehicles for business purposes. Some policies may cover vehicles leased or owned by a business, vehicles owned by employees, and hired vehicles. Business car insurance policies cover damage and liability. They are designed to cover any company-use vehicles that drive on public roads. Each vehicle has coverage, giving companies the freedom to select specific coverage for different parts of their fleets.
Should you have an insurance policy for each car?
Yes. You should have a business auto policy for each of your company’s vehicles. This is true even if you use personal vehicles for business use. The proper insurance cover protects businesses when employees use private cars to run business errands or go to meetings. If there is a severe accident, employees’ insurance coverage may not be enough to cover your business, too.
Business car insurance plans list the number and types of vehicles covered, the kinds of damages included and their causes, and the obligations of both parties (the business and insurance provider).
What do the numbers on the insurance policy mean?
Pay close attention to the numerical symbols contained in your policy declarations. These symbols, called covered auto designation symbols, indicate the vehicles insured for the coverage. These are numbered 1-9 plus 19, with each symbol representing a specific category. Symbol 1 indicates any vehicle, while symbol 2 indicates only owned cars, etc. Good policies should include liability insurance and property damage. When vehicles are leased, or your business is making payments on them, you may have to have specific levels of insurance coverage.
How can I know what type of insurance I need?
When figuring out the best car insurance for your company, keep your specific needs in mind. Do you own vehicles or lease them? Are you making payments? How many vehicles do you have? Are any personal cars, too, that your employees or you drive for business purposes?
Also, keep in mind some of these key points about different coverage types:
- Collision coverage. You can only purchase collision coverage along with comprehensive and liability coverage. This reimburses your company for any vehicle damage that is your fault. This stipulation does not cover vandalism and theft, however. It also does not cover damages paid for by other at-fault drivers’ policies. This type of coverage is important for businesses that have a high risk of damage to their vehicles by employees.
- Liability coverage. Liability insurance protects your business from claims. For example, if your business’s vehicle is involved in injuring people or property, liability is essential. Most states require drivers to have liability coverage. Because it has no deductible, drivers can choose their deductible based on levels of risk. If drivers are found guilty of driving while impaired or driving recklessly, courts can award punitive damages. Some states do not allow business auto insurance to cover punitive damages, so be sure to check your state’s laws.
- Specified perils. Specified perils include losses from specific events or hazards named in your policy. Your company bears the burden of proof in this case, meaning your business must show that your claim is valid using evidence and documentation. This type of coverage is best for businesses that have particular needs for protection in unusual or specialized situations.
- Comprehensive coverage. Comprehensive coverage insures company vehicles against damage that does not happen in a collision. Comprehensive insurance covers damage from things like storms, natural disasters, animals, vandalism, theft, and more. Comprehensive is best for businesses that use their vehicles in places with high rates of crime, collisions with wild animals, or inclement weather.
Best Car Insurance Plans for Company Vehicles
Picking the best car insurance for your business from all the available options can be time-consuming. It can seem as if options are endless. However, there are several qualities shared by major insurance companies offering the best car insurance. Below, you will find the top 10 insurance plan providers for companies.
- State Farm. State Farm offers personal insurance agents for each client. They control about 20 percent of the auto insurance market, easily making them a top company. State Farm’s coverage is well-rated but comes with a slightly higher price tag than some alternatives. State Farm policies are generally about $779 per six-month period. This is best for bigger businesses with larger fleets.
- Progressive. Progressive has about 10 percent of the auto insurance market under their belt. As another popular provider, Progressive has pricing that is similar to, but still slightly lower than that of State Farm. Policies are about $771 per six months. This is best for businesses looking for top tier coverage with a lower price tag.
- GEICO. GEICO is perhaps the best-known name among auto insurance providers. They offer lower rates than the industry average and have some of the best customer satisfaction ratings. GEICO’s policies tend to be more affordable than some alternatives at about $580 per six months. This is best for businesses looking for quality insurance with excellent customer service.
- Allstate. Allstate policies are among the most expensive: around $947 for six months. Therefore, it’s only recommendable for businesses with larger fleets and a big budget.
- USAA. USAA only serves military members and their families. However, they still make up a notable portion of the insurance market. USAA receives top-quality customer satisfaction ratings. USAA also offers significant car insurance discounts for qualifying drivers. USAA’s rates are often the most affordable of major insurers. This is best for businesses owned by military members or their family members.
- Farmers. Farmers is a fairly popular insurer with solid ratings. The company tends to be slightly more expensive than the other insurers, usually around $754 for six months’ coverage. However, Farmers offers each customer an individual agent to offer individualized customer service. This is best for businesses that want an active insurance provider that offers more for a slightly higher price.
- Liberty Mutual. Liberty Mutual generally charges higher prices, compared to other providers, often about $260 more for six months. Also, they are slightly below average in customer service ratings. This is best for businesses with larger budgets with low customer service needs.
- Nationwide. Nationwide offers relatively cheap premiums. While their customer service ratings are average, their policy cost is $557 for six months. This puts their pricing about $125 than their average competitor. This is best for smaller businesses looking for reliable insurance that does not require a large budget.
- American Family. American Family is a smaller insurer than most of the others on this list. It generally receives favorable customer service reviews with few complaints. It also offers one of the cheapest premiums at only $545 for six months’ coverage. This is best for medium-sized businesses looking for good customer service at an affordable price.
- Travelers. Travelers is another smaller provider that offers policies for less than their average competitors with good customer service ratings. Travelers receives a high rating and, at $553 for six months, is about $130 cheaper than the average provider. This is best for businesses looking for a smaller provider’s service with affordable rates.
Finding the best car insurance plan for your company’s vehicles is an important process. Make sure not to rush into any decisions. Weigh your options carefully from among the major providers. While each provides roughly analogous coverage, they vary widely in their cost, quality, and customer service. Remember that the best car insurance for your company will fit your specific needs. Keep in mind that this may cost more than your car insurance. As your business grows, however, you will find business insurance a necessity.
At Camino Financial, our motto is “No business left behind.” This is the inspiration behind our work to keep our clients informed with specialized tools and resources. We strive to help entrepreneurs make the right decisions for their businesses’ growth, including finding the best car insurance. Let us help you stay on top of the latest discounts, best prices, and free tips for your small business by subscribing to our newsletter!
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